The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited Access National Mortgage Corporation (Access National) to determine whether it complied with HUD regulations, procedures, and instructions in originating, underwriting, and submitting for endorsement the FHA-insured loans selected for review. Access National generally complied with HUD regulations, procedures, and instructions in the origination and...

We completed an audit of the City of Jersey City’s (City) Community Development Block Grant (CDBG) float loan activity. Our audit objective was to determine whether the City ensured that CDBG funds used for the float loan complied with applicable rules and regulations. The City did not comply with applicable regulations and failed to take timely action when the float loan defaulted. Specifically, it did not (1) make a good faith effort to...

We audited Infinity Home Mortgage Company, Inc. (Infinity Home Mortgage), a nonsupervised lender approved to originate Federal Housing Administration (FHA) single-family mortgage loans. We selected Infinity Home Mortgage because its default rate for the State of Pennsylvania was significantly higher than the average default rate for the State. Our objective was to determine whether Infinity Home Mortgage complied with U.S. Department of Housing...

We completed an audit of the City of Jersey City's (City) capacity to administer Community Development Block Grant (CDBG) funding provided under the American Recovery and Reinvestment Act of 2009 (Recovery Act). Our objectives were to evaluate the City’s capacity in the areas of internal controls, eligibility, financial controls, procurement, and output/outcomes in administering CDBG funds. The City generally had adequate financial...

We completed an audit of Community Development Block Grant (CDBG) program administered by the City of Paterson (City). Our audit objectives were to determine whether the City (1) disbursed CDBG funds efficiently and effectively in accordance with its submission to HUD and applicable rules and regulations and (2) had a financial management system in place to adequately safeguard the funds. The City did not always disburse CDBG funds efficiently...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited Kier Property Management and Real Estate, LLC (Kier) to determine whether Kier properly accounted for property and management agent costs and properly accomplished its occupancy functions. Kier recorded more than $2 million in notes payable in the properties’ books for notes that did not properly restrict repayment of the principal to surplus cash...

We completed an audit of Ark Mortgage, Incorporated (Ark Mortgage), a nonsupervised direct endorsement lender located in North Brunswick, New Jersey. The audit objectives were to determine whether Ark Mortgage officials (1) originated insured loans in accordance with U.S. Department of Housing and Urban Development/Federal Housing Administration (HUD/FHA) requirements and (2) developed and implemented a quality control plan that complied with...

We completed an audit of Jersey Mortgage Company (Jersey Mortgage), a nonsupervised lender located in Cranford, New Jersey. The audit objectives were to determine whether Jersey Mortgage (1) approved Federal Housing Administration (FHA)-insured loans in accordance with the requirements of the U.S. Department of Housing and Urban Development (HUD)/FHA, which include adherence to prudent lending practices, and (2) developed and implemented a...

The City of Aurora, Colorado will receive more than $1.6 million in Recovery Act funding to carry out its Homelessness Prevention and Rapid Re-Housing Program and perform additional activities under its Community Development Block Grant (CDBG) program. HUD's Office of Inspector General (OIG) evaluated the City's capacity to administer its Recovery Act funds. The OIG did not find evidence to indicate that the City lacked the capacity...

Adams County, Colorado will receive more than $1.3 million in Recovery Act funding to carry out its Homelessness Prevention and Rapid Re-Housing Program and to provide additional funding to its Community Development Block Grant (CDBG) program. HUD's Office of Inspector General (OIG) evaluated the County's capacity to administer its Recovery Act funds. The OIG found weaknesses that could significantly affect the County’s capacity to...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited Adams County, Colorado’s Community Development Block Grant (Block Grant) program to determine whether Adams County’s Community and Economic Opportunity Department (Department) had adequate controls over the administration of its Block Grant funds. The Department did not have adequate controls over its Block Grant funds. Specifically, it did not (1)...

The U. S. Department of Housing and Urban Development Office of Inspector General audited the City of Thornton (City) to determine whether it used its Community Development Block Grant (CDBG) funds for projects that met a national objective. The City did not maintain sufficient records demonstrating that each CDBG activity met a national objective. Of the 10 CDBG projects reviewed, the City sufficiently documented that five of the projects...

We completed an audit of the Union County Consortium's (County) administration of its Community Development Block Grant (CDBG) program to determine whether the County (1) disbursed CDBG funds efficiently and effectively in accordance with its submission to HUD and in compliance with HUD rules and regulations, (2) maintained a financial management system to adequately safeguard funds, and (3) established adequate controls to ensure that...

The U. S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the Housing Authority of the City of Brush, Colorado (Authority) because we received information indicating there were irregularities in the Authority's procurement process. Our audit objective was to determine whether the Authority performed contracting activities in accordance with federal procurement requirements. The Authority did not...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited Adams County, Colorado's HOME Investment Partnerships Program (HOME) to determine whether Adams County appropriately spent and accounted for HOME funds and maintained supporting documentation for its matching contributions reported to HUD. Adams County inappropriately spent or could not support more than $2.1 million in HOME funds. Specifically...

We audited the City of Camden's (City) asset control area (ACA) program following a request from the U.S. Department of Housing and Urban Development's (HUD) Office of Single Family Asset Management for a review of the City's compliance with its ACA agreement with HUD. Our objective was to determine whether the City complied with specific requirements in the ACA agreement pertaining to the resale of properties it acquired from HUD...

We completed an audit the Community Development Block Grant (CDBG) program administrated by the Township of South Orange Village (Township), a subgrantee of the Essex County Consortium (County). Our audit objectives were to determine whether the Township disbursed CDBG funds efficiently and effectively in accordance with its submission to the U.S. Department of Housing and Urban Development (HUD) and with applicable rules and regulations, had a...

We completed an audit of the Community Development Block Grant (CDBG) program administered by the Economic Development Corporation (Corporation), a subgrantee of Essex County Consortium (the County). Our audit objectives were to determine whether the Corporation adequately administered its CDBG program in accordance with applicable rules and regulations. Specifically, whether it efficiently and effectively disbursed CDBG funds, had a financial...

We audited the State of Colorado (State), Division of Housing's (Division) Community Development Block Grant (CDBG) program to determine whether the Division (1) awarded CDBG funds to ineligible projects and (2) properly identified and reported program income data. The Division used CDBG funds for ineligible and questionable projects. This condition occurred because management's main focus was on selecting projects that were for the...

We completed an audit of Union County's (County) Housing Choice Voucher program, which is administered by its Division of Planning and Community Development. Our audit objectives were to determine whether the County's (1) Housing Choice Voucher program units met housing quality standards; (2) costs charged to the Housing Choice Voucher program were supported and eligible; and (3) controls over the Housing Choice Voucher program,...